alaska south central lng (sclng)...

Alaska SCLNG Project Concept Information

Work Product In Progress

Alaska South Central LNG (SCLNG) Project

Overview for Alaska Legislators

February, 2013

Alaska SCLNG Project Concept Information

Work Product In Progress

Alaska SCLNG Project - Overview

Alaska SCLNG Plant Conceptual Layout

• BP, ConocoPhillips, ExxonMobil and TransCanada are working together to progress an Alaska LNG project: - 300+ people developed concept, $25M spent thru Jan13 - Key third party contractors engaged (URS, Fugro, exp) - Leveraging Denali, APP, related material ($700M past work)

• Concept work has defined key issues: - Integrated Basis of Design heat/material balance complete - Potential integration into existing operations - Required gas treating plant design (North Slope location) - Pipeline size and routing options (800+ miles, 42” x80 pipe) - LNG plant design (15-18 million tons per annum – “MTA”) - Gas off-take capacity for secure Alaska fuel supply - Preliminary capital estimate - $45-65 Billion (2011 dollars)

• Key project issues to address: - “Mega-project” challenges (labor, resources, equipment, etc) - Commercial and fiscal issues - Uncertainty related to permitting timing

• Forward Plans: - Use “Phased/Gated” process to advance project - Continue working together to optimize design

Results of URS ArcGIS Location Suitability Screening Study

- 1 -

Alaska SCLNG Project Concept Information

Work Product In Progress

Module Fabrication

Alaska SCLNG Project Concept Information

Work Product In Progress

Module Sealift

Alaska SCLNG Project Concept Information

Work Product In Progress

Module Transport

Alaska SCLNG Project Concept Information

Work Product In Progress

Module Hook Up – Plug and Play

Alaska SCLNG Project Concept Information

Work Product In Progress 6

SCLNG Concept Summary - Upstream

PTU (62 miles east of PBU/GTP area) • Initial Production System (IPS) project in progress - 2016 SU • Preliminary SCLNG design basis for PTU: – Leverage IPS facilities, add fourteen new wells – Add new gas facilities to existing central pad / facilities – New 30” gas line from PTU to GTP in Prudhoe Bay – Peak workforce – 500-1,500 people

PBU Tie-in (adjacent to proposed GTP location) • Installation / tie-in managed by Prudhoe Bay Operator – Tie into existing CGF, deliver gas to new Gas Treatment Plant – Gas project / deliveries tied to future PBU operations

• Preliminary plan is to inject CO2 using existing injection systems

as appropriate

PTU Field Layout

Process

Utilities

Power Generation

Point Thomson Central Pad

Compression

PBU Central Gas Facility Tie-in

Alaska SCLNG Project Concept Information

Work Product In Progress 7

SCLNG - Concept Summary - Midstream

NS Gas Treatment Plant • Designed to remove gas impurities • Four amine trains with compression, dehydration and chilling • Prime power generation (5 units, 54kHP) • All required utilities, infrastructure and camps • Facility will be modularized, sealifted to location • Peak workforce – 500-2,000 people

Gas Pipeline and Compression Stations • 800+ mile 42” x80 pipeline • 3-3.5 billion cubic feet gas per day • Eight compressor stations (30kHP each) • Pipeline contents will be treated gas, impurities removed • Designed to manage continuous and discontinuous permafrost regions • Expansion potential with additional compression if appropriate • Five off-take points for Alaska gas delivery • Peak workforce – 3,500 - 5,000 people

NS Gas Treatment Plant Design

Potential SCLNG Pipeline Routes

Reference Points

Atigun Pass

Yukon River

Tanana River

Denali NP

Thompson Pass

Alaska SCLNG Project Concept Information

Work Product In Progress 8

SCLNG - Concept Summary – Downstream

LNG Plant and Storage • Three 5.8 million tons per annum (MTA) LNG trains

- Plant receives 2.2 - 2.5 billion cubic feet per day to liquefy - LNG production varies with ambient temp (4.9 - 6.3 MTA) - Small volume of stabilized condensate produced (~1,000 bbl/day)

• Integrated utility system with all utilities on site • Two-three 160,000 cubic meter LNG storage tanks • Peak workforce – 3,500 – 5,000 people

Marine Offloading Facility • Conventional jetty and trestle design • Two berths • Design based on 15-20 LNG carriers • Marine support system includes required tugs, security boats • Peak workforce – 1,000 – 1,500 people

SCLNG Plant and Storage

South Central Marine Map

Alaska SCLNG Project Concept Information

Work Product In Progress

Alaska South Central LNG (SCLNG) Project

Overview for Alaska Legislators

Back-Up Material

Attachments to Oct-12 Letter to Governor Parnell

February, 2013

Southcentral Alaska LNG – Integrated Team

Producing Fields Lead: BP

Pipelines Lead: Alaska Pipeline Project

LNG Plant Lead: ConocoPhillips

Integration Team Lead: ExxonMobil

Commercial Team Lead: BP

Concept Team Lead: ExxonMobil

Management Committee

Technical Committee

Multimillion Dollar, Four-Company Effort – 125+ Employees, 100+ Contractors •Joint work commenced March 31, 2012 after completion of the Pt. Thomson Settlement / joint work agreements •Cooperative effort among the leading North Slope producers and a leading North American pipeline company •Identified potentially viable LNG project options to monetize ANS natural gas •Used company strengths, shared information / expertise; built upon past efforts, sought out new ideas

Attachment 1

Alaska Southcentral LNG – Project Concept Description

Gas Treating •Located at North Slope or Southcentral LNG site •Remove CO2 and other gases and dispose / use •Footprint: 150 - 250 acres •Peak Workforce: 500 - 2,000 people •Required Steel: 250,000 - 300,000 tons •Among largest in world

Liquefaction Plant • Capacity: 15 – 18 million tonnes per annum (MTA)

3 trains (5-6 MTA / train) • Potential areas: 22 sites assessed in Cook Inlet, Prince

William Sound and other Southcentral sites • Footprint: 400 - 500 acres • Peak Workforce: 3,500 - 5,000 people • Required Steel: 100,000-150,000 tons

Storage / Loading • LNG Storage Tanks, Terminal • Dock; 1 - 2 Jetties • Design based on 15– 20 tankers • Peak Workforce: 1,000-1,500 people

Estimated Total Cost: $45 – $65+ Billion Peak Construction Workforce: 9,000 – 15,000 jobs Operations Workforce: ~1000 jobs in Alaska

Attachment 2

Descriptions and costs are preliminary in nature and subject to change. Cost range excludes inflation.

Pipeline • Large diameter: 42”- 48” operating at >2,000 psi •Capacity: 3 - 3.5 billion cubic feet per day •Length: ~800 miles (similar to TAPS) •Peak Workforce: 3,500 - 5,000 people •Required Steel: 600,000 - 1,200,000 tons •State off-take: ~5 points, 300-350 million cubic feet per day, based on demand

Producing Fields •~35 TCF discovered North Slope resource •Additional exploration potential •Anchored by Prudhoe Bay and Pt. Thomson with ~20 years supply available

•Use of existing and new North Slope facilities •Confirmed range of gas blends from PBU/PTU can generate marketable LNG product

•Peak Workforce: 500 – 1,500 people

GO

LNG

Pro

ject

O

pera

tions

Execute: • Final engineering • Financing • Procurement • Fabricate / Logistics / Construct • Prepare for Operations

Complete Gov’t / Reg. Issues: • Secure remaining construction

/ operating permits • Stakeholder engagement Implement business structure & agreements

Commission / start-up

Southcentral Alaska LNG – Work Plans / Key Decision Points

Evaluate: • Range of technically viable

options for major project components

• Business Structure • In-state gas / export LNG demand

Screen commercial viability

Viable Technical Option(s) Identified Government Support Permits / Land Use Achievable Potential Commercial Viability

Requirements to Take Next Step:

Progress: • Preliminary engineering to

refine concept • Business structure • Financing plan

Start individual gas / LNG sales / shipping efforts Assess commercial viability

Viable technical option Government Support Permits / Land Use Underway Potential Commercial Viability

Activ

ities

Complete: • Front-end engineering & design • Major contract preparation • Business structure • Financing arrangements

Solicit Interest of Others Advance Gov’t / Reg. Issues: • Key permit / land use approvals • Stakeholder engagement • Secure DOE Export License

Execute individual gas / LNG sales / shipping agreements Confirm commercial viability

Secure Permits / Land Use / Financing / Key Commercial Agreements

Confirm Commercial Viability Execute EPC contracts

Attachment 3

Peak Staffing: ~200 400 - 500 500 – 1,500 9,000 – 15,000

Cost ($): Tens of Millions Hundreds of Millions Billions Tens of Billions

Est. Engineering / Technical Duration*: 12 - 18 Months 2 - 3 Years 5 - 6 Years

Concept Selection

Pre- FEED

FEED (Front-End

Engineering & Design)

EPC (Engineering,

Procurement & Construction)

Decision to Build the

Project Decision Decision

(Today)

PTU Settlement, Joint Work

Agreements

* NOTE: Duration of various phases may be extended by protracted resolution of fiscal terms, permitting and regulatory delays, legal challenges, changes in commodity market outlook, time to secure long-term LNG contracts, labor shortages, material & equipment availability, weather, etc.

GO GO GO

Solicit Interest of Others Establish Government Support and Advance Regulatory Issues:

• Competitive oil tax environment; predictable / durable LNG project fiscal terms; AGIA Issues

• Assure ability to secure regulatory approvals / permits / land use • Environmental activities / Technical data collection • Stakeholder engagement • File DOE Export License